NKE has been in a bull market for a long time, but have seen a significant period of consolidation since Q4 of 2015 - significant in both price movement and the amount of time its taking.
NKE Weekly Chart 10/21
(click to enlarge)
- The weekly chart shows price action in a falling wedge or channel.
- If we "count" the waves within this structure, we are on "e" wave of an abcde correction pattern. (using Elliott Wave terminology
- Now if this wave e drags NKE a little lower towards 50, price will likely be supported by several factors.
Support around 50:
- At 50, price will be near the consolidation structure support.
- 50 is a psychological level.
- There is a support/resistance pivot here at 50.
- I believe there will be a boost here to push price back towards 58 to test the wedge resistance.
- I think a break above 60 will be needed to convince the market NKE is back on the bullish mode.